Vodafone and Tata want CWW bid deadline extended

Rival bidders Vodafone and Tata Communications are reportedly asking for more time to decide whether to bid for Cable and Wireless Worldwide.

Both firms are said to be concerned at the flow of information from the telecoms firm and are preparing to ask the Takeover Panel to extend Thursday's bid deadline, according to reports quoting banking sources close to both companies.

The interest in CWW follows a slump in the company's share price in recent months, which has seen three profit warnings and a series of top level boardroom changes.

The company has been hit by government spending cutbacks and the weak economy, resulting in heavy losses for the six months to 30 September and a warning of no dividend payments.

Chief executive Gavin Darby said last month that the company was over complex and blighted by under-investment.

Buying CWW would give Vodafone access to CWW’s fixed-line phone network while Tata is interested in CWW’s international cabling network.

The communications network’s stock has almost doubled since Vodafone threw its hat in the ring at the end of September. Bids are expected to come in above £1bn.